Define contract of indemnity and distinguish it from contract of guarantee.

Meaning: a promise by one party (the indemnifier) to save the other (the indemnity-holder) from loss caused by the conduct of the promisor himself or of any other person — a loss- shifting device: one party's risk contractually loaded onto another who agrees to bear it. (The classical codified definition is the Indian Contract Act's — "to save a party from loss caused to him by the conduct of the promisor himself, or by the conduct of any other person.") Everyday forms: the contractor indemnifying the employer against third-party claims; the director indemnifying a lender; the tenant indemnifying the landlord; the insurance policy (the regulated indemnity — the Insurance Act 2079's frame). Basic features: (i) two parties at the core — the third party is only the occasion of loss, not a contracting party; (ii) loss-contingent liability — the duty crystallises when the loss occurs within the promise's scope; (iii) primary liability toward the indemnity-holder (contrast the surety's secondary liability); (iv) the general contract law's essentials apply (Units 1–5); (v) the indemnified's own benefit is not required — protection against the defined risk is the consideration's essence. Rights and duties of the indemnity-holder (the indemnified): Rights: to recover the loss within the promise's scope; to recover damages, interest and the costs of defended suits (the celebrated trilogy of the Indian…